Exxon’s Permian Production to Yield US$64 billion for New Mexico

ExxonMobil Corporation’s development of its Permian Basin resources could yield US$64 billion for the state of New Mexico, according to a study conducted for the company.

Findings from the study, done by Impact Data Source, found that the focus on the Permian would generate US$64 billion in net economic benefits for the state and local communities for the next 40 years.

With an assumed oil price of US$40 per barrel, the study said the state government would receive US$44 billion from new leases and royalties and US$8.5 billion from state oil and gas severance taxes.

“The Permian Basin is the engine of America’s energy renaissance and New Mexico residents will see direct economic benefits and opportunities from our planned investments,” Exxon CEO Darren Woods said in a company statement.

Exxon’s Permian activity is also expected to create 4,100 direct job opportunities per year for New Mexico for the next 40 years and generate US$29 billion in new wages, salaries and benefits.

“The benefit to this state’s bottom line, as represented by investments from companies like ExxonMobil, has been enormous,” said New Mexico governor Lujan Grisham.

“My administration has been and will continue to be responsive to changes in the energy sector and the need for meaningful regulation and diversification as a means of ensuring a sustainable future – for our children, their education, the infrastructure that will support our collective future and more.”

In March, Exxon revealed its plans to increase Permian production to more than one million barrels of oil equivalent per day by 2024.

The south-eastern New Mexico communities where ExxonMobil operates will receive US$1.8 billion in net tax revenue, according to the study.

Source: Rigzone